Karat Home, a maker of living room, dining room, bedroom, home office and outdoor furniture, submitted the winning bid in an auction overseen by the U.S. Bankruptcy Court District of New Jersey. In the filing, the court noted that the asset purchase agreement does not contemplate the assignment of any store leases. A sale hearing is slated for Dec. 28 at 10 a.m.
Z Gallerie filed for Chapter 11 protections, citing liabilities between $50 million and $100 million, in October and began closing sales for its 21 stores later that same month. It is owned by CSC Generation Holdings, Inc., and does business as part of DirectBuy Home Improvement, Inc. CSC bought DirectBuy/Z Gallerie out of bankruptcy in 2019 for $20.3 million.
According to its website, Karat Home was founded as J&S Yard in 2015.